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Dogecoin Breaks Key Support as Bearish Momentum Builds

Dogecoin Breaks Key Support as Bearish Momentum Builds

Dogecoin has experienced a steep drop, falling below the critical $0.3550 support against the US Dollar. Currently, DOGE is struggling to rebound and faces resistance at the $0.350 mark. The cryptocurrency's price initiated a notable descent beneath the $0.3650 level, reflecting a broader downturn similar to Bitcoin and Ethereum.

The current trading situation sees Dogecoin below both the $0.3550 level and the 100-hour simple moving average. A bearish trend line is evident, presenting resistance around the $0.3550 level on the hourly DOGE/USD chart, sourced from Kraken. This presents a challenge for DOGE to mount a fresh ascent past both the $0.3550 and $0.3650 resistance levels.

Following a descent from above $0.400, Dogecoin saw its value tumble below several critical support levels, including $0.380 and $0.3650. It plummeted further, momentarily below $0.320. A temporary low established at $0.30 has led to a consolidation phase. The price did recover above $0.320, testing the 23.6% Fibonacci retracement level from a $0.4096 high down to a $0.300 low.

Currently, DOGE remains vulnerable under $0.3550 and the pivotal 100-hour simple moving average. There’s a notable resistance trend line at $0.3550. Resistance near $0.3250 is immediate, with significant barriers at $0.340 and $0.3550, aligned with the 50% Fib retracement.

Should Dogecoin surpass the $0.3550 resistance, it could advance towards $0.3650. Further gains might propel it towards $0.380. However, the critical milestone would be $0.40 for the bulls. Failure to break the $0.3550 could reignite a downward trajectory. Initial downside support appears near $0.3050, with the key threshold at $0.30.

A breach below $0.30 could accelerate losses, potentially edging towards $0.280 or $0.2620. Technical indicators underscore this risk, as the Hourly MACD gains bearish momentum, and the Hourly RSI lingers below 50. Watch for support levels at $0.3050 and $0.3000, against resistance walls at $0.3400 and $0.3550.

Disclaimer and Risk Warning: The information provided in this article is for educational and informational purposes only and is based on the author's opinion. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency assets are highly volatile and subject to high risk, including the risk of losing all or a substantial amount of your investment. Trading or holding crypto assets may not be suitable for all investors. The views expressed in this article are solely those of the author(s) and do not represent the official policy or position of Yellow, its founders, or its executives. Always conduct your own thorough research (D.Y.O.R.) and consult a licensed financial professional before making any investment decision.
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